Alternate Base Rate - Revision history

imported>Doug Williamson: Update for LIBOR transition.

2022-04-25T21:10:24Z

Update for LIBOR transition.

← Older revision		Revision as of 21:10, 25 April 2022
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	* The lender's published "[[prime rate]]" (see also [[US prime rate]]) or generally applicable "base rate", or the average of such rates in a syndicated loan.		* The lender's published "[[prime rate]]" (see also [[US prime rate]]) or generally applicable "base rate", or the average of such rates in a syndicated loan.
	* The appropriate central bank's Base Rate or equivalent or its discount rate, plus some agreed additional margin.		* The appropriate central bank's Base Rate or equivalent or its discount rate, plus some agreed additional margin.
	* The effective federal funds Rate (see [[Fed funds]] and [[EFFR]])		* The effective federal funds Rate (see [[Fed funds]] and [[EFFR]]).
	* The appropriate [[LIBOR]] or similar rate

imported>Doug Williamson: Standardise page layout.

2017-03-01T08:38:37Z

Standardise page layout.

← Older revision		Revision as of 08:38, 1 March 2017
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			''Borrowing documentation''

	(ABR).		(ABR).

	~~''Borrowing documentation''.~~

imported>Doug Williamson: Add alternative.

2016-05-19T06:41:01Z

Add alternative.

← Older revision		Revision as of 06:41, 19 May 2016
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	The range is limited only by the imagination and agreement of the parties.		The range is limited only by the imagination and agreement of the parties.


			The ABR is sometimes known as the ''Alternative'' Base Rate.

imported>Doug Williamson: Layout & add link.

2016-05-19T06:22:23Z

Layout & add link.

← Older revision		Revision as of 06:22, 19 May 2016
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	(ABR).		(ABR).

			''Borrowing documentation''.

	~~<u>Note</u> The article "[[Base rate]]" sets out several definitions of base rate. The sense in which base rate is used at different points in this article should be clear from the context.~~

			Alternate Base Rate is a defined term in many loan agreements, particularly in US practice.

	~~Alternate Base Rate is a defined term in many loan agreements, particularly in US practice.~~ The definition varies between loan agreements but common features are many. It sets out how, under specified circumstances, to determine the ~~base~~ rate to which a margin will be added to give the rate of interest payable on an advance.		The definition varies between loan agreements but common features are many.

			It sets out how, under specified circumstances, to determine the reference rate to which a margin will be added to give the rate of interest payable on an advance.


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	The range is limited only by the imagination and agreement of the parties.		The range is limited only by the imagination and agreement of the parties.


			==See also==
			*[[Advance]]
			*[[Base rate]]
			*[[Benchmark]]
			*[[Margin]]

	[[Category:Corporate_financial_management]]		[[Category:Corporate_financial_management]]
	[[Category:Cash_management]]		[[Category:Cash_management]]

imported>Doug Williamson: Expand.

2016-05-13T14:56:43Z

Expand.

← Older revision		Revision as of 14:56, 13 May 2016
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	Typically the definition sets out several choices of rate. Lenders may seek to make the rate the highest of the alternative bases.		Typically the definition sets out several choices of rate. Lenders may seek to make the rate the highest of the alternative bases.

			Borrowers should ensure they fully understand how the Alternate Base Rate will be determined, and the consequences in interest cost.


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	* The effective federal funds Rate (see [[Fed funds]] and [[EFFR]])		* The effective federal funds Rate (see [[Fed funds]] and [[EFFR]])
	* The appropriate [[LIBOR]] or similar rate		* The appropriate [[LIBOR]] or similar rate
	The range is limited only by the imagination and agreement of the parties

			The range is limited only by the imagination and agreement of the parties.

	[[Category:Corporate_financial_management]]		[[Category:Corporate_financial_management]]
	[[Category:Cash_management]]		[[Category:Cash_management]]

imported>Doug Williamson: Layout.

2016-05-12T20:40:48Z

Layout.

← Older revision		Revision as of 20:40, 12 May 2016
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	''ABR''		(ABR).

imported>John Grout: To create the entry for a commonly used term the meaning of which differs from loan agreement to loan agreement

2016-05-12T11:20:45Z

To create the entry for a commonly used term the meaning of which differs from loan agreement to loan agreement

New page

''ABR''

<u>Note</u> The article "[[Base rate]]" sets out several definitions of base rate. The sense in which base rate is used at different points in this article should be clear from the context.

Alternate Base Rate is a defined term in many loan agreements, particularly in US practice. The definition varies between loan agreements but common features are many. It sets out how, under specified circumstances, to determine the base rate to which a margin will be added to give the rate of interest payable on an advance.

Typically the definition sets out several choices of rate. Lenders may seek to make the rate the highest of the alternative bases.

Models may include among the choices:
* The lender's published "[[prime rate]]" (see also [[US prime rate]]) or generally applicable "base rate", or the average of such rates in a syndicated loan.
* The appropriate central bank's Base Rate or equivalent or its discount rate, plus some agreed additional margin.
* The effective federal funds Rate (see [[Fed funds]] and [[EFFR]])
* The appropriate [[LIBOR]] or similar rate
The range is limited only by the imagination and agreement of the parties

[[Category:Corporate_financial_management]]
[[Category:Cash_management]]